Jordan Belfort, the scheming stock broker famously portrayed by Leonardo DiCaprio in Wolf of Wall Street, is out of jail and sharing his thoughts on Bitcoin (BTC). In a new CNBC documentary and on YouTube, the ‘Wolf of Wall Street’ says don’t invest in Bitcoin—because he knows one when he sees one. But watch a few minutes of Wolf of Wall Street and you may wonder: Should anyone listen to Wall Street’s most notorious scammer warning not to invest in Bitcoin?
Who is the ‘Wolf of Wall Street’?
Thanks to Martin Scorsese’s 2013 hit, Jordan Belfort will forever be known as the ‘Wolf of Wall Street’. In real life, Befort swindled and partied just as much as Leonardo DiCaprio does in the movie. He went from trading penny stocks in the 80s to major securities fraud in the 90s. Over the course of his career, Jordan Belfort swindled over $1 billion.
Following a 2-year stint in prison and $110 million in restitution, Jordan Belfort is back. And despite his lifelong ban from the securities industry, guilty plea to swindling massive amounts from investors and the infamous portrayal of him in Wolf of Wall Street, Belfort still has clout in the public eye.
Not only do major news outlets take his financial advice, but Jordan Belfort collects up to $75,0000 per speech. Don’t worry, though: You can hear Jordan Belfort rant for free on his popular YouTube channel.
Jordan Belfort Says ‘Don’t Invest In Bitcoin’
Jordan Belfort goes for it, whether he’s swindling over $1 billion or critiquing Bitcoin. In the CNBC documentary Bitcoin: Boom or Bust which premieres on August 27, Belfort warns the world not to invest in Bitcoin.
On his YouTube channel, he’s been emphatic about Bitcoin being a big scam for months. “This is just the beginning of the end,” he tells a camera from his car. “It has the ability to go to zero.”
This is all thanks to the Greater Fool Theory, according to Belfort. He believes that ill-founded expectations of the market, rather than intrinsic value, determine the price of something. In other words, if someone believes that someone else will pay an inflated price for something, they’re more likely to pay that same high price, too. “I know this better than anyone in the world. I’m not proud of that, but I do,” exclaims Belfort.
Should You Listen to Jordan Belfort?
Not convinced? Jordan Belfort claims that 9 of his unnamed 10 predictions about Bitcoin have come true. But should you be taking financial advice from the man who swindled $1 billion in the 1990s and swindles $75,000 per speech today?
Not only is Jordan Belfort a product of the 90s, but he has one of the worst financial track records in history. Of course, bitcoin’s price fluctuates with investor attention, as explained by these Yale economists. But scam artists like Belfort only see the world in terms of fraud, especially if it’s as new and revolutionary as a cryptocurrency.
More importantly, however, you should remember that Jordan Belfort is, first and foremost, a stockbroker. “There’s no utility in it,” Belfort explains. What this really means is ‘Jordan Belfort sees no utility in it’. With Bitcoin, you can buy anything around the world without involving big financial institutions. Like this man who traveled the world for one year on one Bitcoin. Therefore, it threatens to make companies ranging from Bank of America to Belfort’s famously fraudulent Stratton Oakmont Inc., obsolete. They know it, too. Last year, financial institutions filed the most blockchain patents—and banned their customers from buying bitcoin.
It’s next to impossible for the Jordan Belfort’s of the world to imagine finance—or anything—without them. This is especially true if you haven’t been in the game since the late 90s. Don’t let anyone, from former stockbrokers to famous economists to hype determine whether and when you invest.